Jetstar and Virgin have been called out by consumer groups for charging $8.50 and $7.70 for credit card bookings per person respectively – despite the real cost of processing averaging just 0.81 per cent per transaction.

Qantas is the only carrier to reduce its surcharge - but is still charging $7 per passenger. Photo: Joe Armao

Qantas, the only carrier to reduce its surcharge since the reforms were introduced, is still charging passengers a flat fee of $7 per person.

Last year the Reserve Bank introduced reforms with the aim of restricting inflated card fees, particularly on taxis and air fares. The changes enabled card companies such as MasterCard and Visa to limit the fees charged by their clients, such as Qantas or Cabcharge.

But consumer group Choice says companies are still using excessive fees to make money rather than to cover the cost of the transaction.

It says the RBA reforms are not enforced by any government regulator, leaving card operators to lobby for change themselves.

Advertisement

‘‘The RBA has created this great new rule ... but there is no government agency or regulator with the power to actually enforce it,’’ Choice director of campaigns Matthew Levey said. ‘‘We’ve been monitoring for almost 300 days and it’s clear that no one has the power to enforce these rules.’’

The average surcharge for MasterCard credit cards is 1.8 per cent, for Visa it is 1.9 per cent, for American Express it is 2.9 per cent and for Diners Club it is 4 per cent, according to RBA figures. But Choice says some companies, particularly airlines, taxis and hotels, are continuing to charge between 5-10 per cent.

Credit card companies have been supportive of greater regulation as the fee goes directly to the merchant and restricts customers from using their products.

Brent Thomas, vice-president of public policy at MasterCard, said the RBA reforms had led to a very small reduction in fees charged. He said the government needed to intervene to enforce greater restrictions across the board.

‘‘What we would like to see a regulator do is enforce merchant behaviour so that we don’t see that profound difference,’’ he said. ‘‘The whole idea behind the reforms is to create benefits to consumers. We have not reached a point where this has been enforced.’’

Choice has repeatedly named Qantas as a merchant which uses fees to raise revenue. It said customers flying Qantas from Sydney to Melbourne were still paying 523 per cent more than the average merchant service fee, down from 568 per cent before the reforms.

Qantas’ budget airline Jetstar charges a flat $8.50 credit card booking fee per person, per flight – regardless of the cost of the air fare. The fee is $12.50 per person for an international flight.

‘‘We need to see the federal government enforce the RBA’s rule,’’ Mr Levey said.

The Australian Competition and Consumer Commission has responsibility for the conduct of suppliers, including in relation to surcharges or fees that do not relate to payment systems and whether the use of such surcharges or fees may mislead or deceive consumers regarding the total price of goods or services.

However, an ACCC spokeswoman referred all inquiries about surcharges to the RBA.

A Jetstar spokesman said customers could avoid paying the booking fee by using a direct deposit, real time electronic funds transfer or Jetstar MasterCard.

‘‘While Jetstar doesn’t have a credit card surcharge, we are aware of the RBA standard applying to credit schemes,’’ he said.

A Qantas spokesman said: ‘‘The costs associated with card payments are real and we do need to recover them.’'

Mr Thomas said more regulation was also needed to prevent companies from re-badging what they called a surcharge.

‘‘They might call it booking fee, but it’s simply a surcharge,’’ he said.